Making Tax Digital
When does it come into effect?
|April 2019||April 2020|
|· For VAT registered businesses/organisations with a turnover above the VAT Threshold (Currently: £85,000)||· For Income Tax (Self-employment or from property) – Exemption for a turnover below £10,000|
· For Corporation Tax
|Exemptions will be given to those that cannot file digitally due to age, religion or remoteness of location.|
What do you need to do?
- Keep records in a digital form
- Ensure these records are kept up to date
- File VAT returns directly from the software where your digital records are stored
What software is compatible?
There are many software suppliers compatible with making tax digital, there are a few listed below:
|· Xero (Recommended)||· Quickbooks|
|· Sage One||· Sage Line 50 (If upgraded to v24)|
Can I use Spreadsheets?
Spreadsheets are permitted, but are not recommended. If they are used, they will need to be combined with a third party software using API’s to ensure there is a seamless flow of data to HMRC from the business. It is also likely that the spreadsheets will need to be kept in a certain format dictated by HMRC.